Kirby Profit Falls 23 Percent

Barge operator Kirby Corporation earned a profit of $28 million in the first quarter, down 23 percent compared with the 2008 first quarter. The result included a $4 million charge for early retirements and staff reductions as Kirby fought to cut operating costs in the face of declining demand due to the recession.

Consolidated revenue for the first quarter dropped to $277.7 million compared with revenue of $330.6 million reported for the 2008 first quarter.

"The current economic recession and its impact on both our marine transportation and diesel engine services businesses ended our current string of 20 consecutive quarters with year over year net earnings increases,” said Joe Pyne, Kirby's president and chief executive officer.

As a result of lower demand, the company cut shore staffs of the marine transportation and diesel engine services segments by approximately 6 percent through early retirement incentives and staff reductions. Kirby expects savings to accrue by the end of this year and into next. In addition, all officer and management salaries were frozen at 2008 levels.

Kirby also significantly reduced the number of chartered towboats in operation, moved several owned towboats and tank barges to inactive status and reduced maintenance on that equipment.

Contact Thomas L. Gallagher at tgallagher@joc.com .